HAWAII MEDICAL SERVICE ASSOCIATION

Hawaii Medical Service Association (HMSA) is Hawaii's largest health insurance company. The not-for-profit company serves some 708,000 members and is an independent licensee of the Blue Cross and Blue Shield Association. Hawaii Medical Service Association's insurance plans include Health Plan Hawaii (HMO), preferred provider plans (PPOs), and traditional indemnity, as well as supplemental Medicare and high-deductable plans. The company serves both employer groups and individual members. In addition to health plans, the company covers dental and vision services and prescription drugs. HMSA also provides wellness, disease management, and health education services. It was formed in 1938.

Operations

Most of HMSA's members (more than 520,000) are part of its 15,000 employer group accounts. The other 200,000 members are served through individual policies. More than 500,000 customers also opt in on the company's prescription drug coverage plans, while 400,000 have vision benefits and about 200,000 participate in a dental plan.

HMSA covers more than half of Hawaii's residents, and its provider network includes more than 95% of the state's doctors.

Financial Performance

HMSA has increased its revenues over the past few years. It reported some $2.5 billion in premiums in 2012. It also reported a large increase in net income to nearly $36 million that year, up from $5 million in 2011. The company prides itself on its record of applying more than 90% of premiums towards member claims.

Strategy

HMSA has been working to improve its service to all customers. It got out ahead of the Affordable Care Act by instituting programs that pay doctors based on out comes. The program, Cozeva, was tested in 2011 and rolled out system-wide in 2012. It has also been opening local neighborhood centers to make its services more accessible to customers.